Transport and storage is vital to the Australian economy, underpinning a diverse range of industries and activities. These range from transporting and storing freight, to the movement of people by private and public transport, to vehicle hire and even the use of pipelines.

The contribution of an industry to the overall production of goods and services in an economy, gross domestic product (GDP), is measured by gross value added (GVA). Information on the relationship between industry GVA and GDP is provided in the Industry structure and performance chapter.

All industry subdivisions except transport services and storage had increases in GVA (in volume terms) between 2004-05 and 2005-06. Air and space transport recorded the greatest increase in GVA (5.6%), followed closely by Road transport (5.5%), and Rail, pipeline and other transport (1.9%). Transport services and storage (which includes water transport) GVA fell by 0.8% between 2004-05 and 2005-06.

Between 2005-06 and 2006-07 Transport and storage total employment increased from 461,400 to 471,000 people (table 24.2). Water transport employment rose by 2,300 (19%), storage increased 3,800 (8.4%) and road transport rose 11,300 (5.2%). Over the same period, employment in rail transport decreased by 11% to 35,300 people, and air and space transport employment decreased by 5.5% to 49,900 people.

24.2 TRANSPORT AND STORAGE INDUSTRY(a), Employment(b)

2005-06

2006-07

ANZSIC Subdivision

'000

'000

Road transport

218.4

229.7

Rail transport

39.8

35.3

Water transport

12.2

14.5

Air and space transport

52.8

49.9

Other transport

*0.8

*0.2

Services to transport

80.7

80.9

Storage

44.8

48.6

Transport and storage n.f.d.(c)

11.9

11.9

Total transport and storage

461.4

471.0

* estimate has a relative standard error of 25% to 50% and should be used with caution

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 edition.

(b) Annual average of quarterly data.

(c) Not further defined. Insufficient detail collected from survey respondent to allocate them to a specific industry code.

In 2004-05 the Transport and storage industry had 126,727 operating businesses, compared with 123,060 in 2003-04 (table 24.3). These businesses generated $2,266 million (m) from the sale of goods, and $91,337m in income from services, an increase of 7.8% and 14% respectively, compared with 2003-04. Capital expenditure in 2004-05 was $9,279m, and industry value added $41,791m. The profit margin for the industry was 7.9% in 2004-05, compared with 4.5% in 2003-04, and 80% of businesses made a profit in 2004-05 while 20% made a loss.

Transport and storage industry production (in volume terms) more than doubled between 1987-88 and 2005-06 (graph 24.4).

24.4 Transport and storage production(a)(b)

Wages and salaries for the Transport and storage industry in 2004-05 were $18,479m. Total income was $102,850m, total paid expenses $95,223m, while operating profit before tax was $7,627m (table 24.5). Road transport was the largest component industry, with 36% of the industry's wages and salaries and operating profit before tax, and 35% of total income and total expenses.